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Action against bribery

QUESTION: One of our employees working in the marketing division had collected money from our clients for suppressing some invoices from our attention. When we knew about it, the employee was terminated from service. Can we initiate any legal action against the person under Qatar’s laws?
ED, Doha

ANSWER: In addition to the termination from service, the company can initiate action against the person for bribery as per the Qatar penal law. 
Article 146 of the Qatar Penal Law stipulates that any employee who asks, for himself or for another party, for money or benefit or a promise of something in return without the knowledge or consent of his employer, to undertake any of the acts assigned to him or abstain from said act, shall be considered as the receiver of a bribe and a penalty of imprisonment for a period not exceeding three years or a fine not exceeding QR15,000 or both.  

Defects in execution
Q: To what extent can the designer be held liable for the defects in execution of the project? As per law, who will be held liable for the defects in execution? Being the designers of the buildings, are we also liable for the defects? Please advise.
VY, Doha

A: If the scope of work is limited to the design of the buildings, the designer shall not be liable for the defects in execution. 

According to Article 712 of the Civil laws, if the work is limited to the design of the building or structure in whole or in part, he shall be responsible for the defects attributed to the design prepared by him but not for the defects due to the execution method. 
In addition, if the employer entrusts him to supervise the execution in whole or in part, he shall also be liable for the defects attributed to the method of execution supervised. 


Expert delaying report’s submission
Q: I worked with a construction company in Doha and one year ago I got terminated but they still have not paid my entitlements. As suggested from the Labour Department, I filed a labour case through a lawyer and the court appointed an expert in my case for verifying the claims. The expert was appointed in April 2016 and so far he had not submitted the report. When I tried to contact the lawyer, he said that the expert report would be filed soon. The court case is getting postponed due to the delay from the part of expert. Is there any alternative action that could be initiated? What is specified in the law with regard to the delay on part of expert?    
FL, Doha

A: According to Article 351, if the expert fails to submit his report within the term specified in court order, he shall be bound to deposit a submission stating the work performed, and reasons that hinders from the completion of his duty. If the court founds the reasons justifiable, the court shall grant the extension of time to submit the report. If the reasons for delay in submission is not justifiable, the court may impose a fine not exceeding QR2,000 and grant time or replace him and obligate him to refund the money received from the court. 

The effect of  novation
Q: What’s Novation? Our company is in crisis and few projects in breach. We are deliberating on substitution of a new party or a new commitment. What’s validity under Qatar Law for substitution of a new party/new commitment?
LX, Doha

A: Novation is an agreement made between two contracting parties to allow for the substitution of a new party for an existing one. Also, it is the act of either replacing an obligation to perform with another obligation or adding a new obligation to perform. The effect of  novation is to extinguish an existing contract, and replace the contract with a new one, on the same terms, between different parties. Under Qatari law, a novation will require the consent of the outgoing, continuing and incoming parties.

*Please send your questions by  e-mail to: leges@qatar.net.qa

LEGAL SYSTEM IN QATAR

The assets of the company shall not be attached for the settlement of debts owed by a shareholder; however, the shares and related dividends of that shareholder may be attached. An attachment in respect of the shares shall be recorded in the Shareholders Register.
As per Article 165, the founders shall not dispose of their shares until after two years have elapsed from the date on which the incorporation of company is finalised. However, if a founder is deceased, his heirs may dispose of the shares during this period. It is permitted to mortgage these shares or transfer their ownership by sale during this period from one founder to another founder, or to the government, or from bankrupt founder to the other, or by any court judgment. 
According to Article 166, any resolution passed by the ordinary or the Extraordinary General Assembly which purports to affect the shareholder’s rights under this law, or under the Articles of Association, or to increase liabilities of the shareholder, shall be void. The Articles of Association of the company may stipulate restrictions regarding the transfer of shares provided it does not prohibit transfer of shares
The bonds shall be nominal, and shall remain as such until the full payment of its value. As per Article 171, The issuance of bonds is permitted only where the following conditions are satisfied: (1) The Article of Association of the company permits issuance of bonds, (2) The company’s share capital has been fully paid, and (3) The value of the bonds shall not exceed the capital existing according to the latest approved balance sheet unless the bonds are guaranteed by the state or any of the banks. Bonds issued for one loan shall convey equal rights on its holders; and any agreement to the contrary shall be void.
According to Article 173, if the bonds were offered for public subscription, it shall take place through one or more of the banks accredited by the state or through companies licensed for this purpose. An invitation to the public for subscription shall be signed by the members of the board of directors and shall be issued at least 15days in advance by publishing in two local daily newspapers, of which one shall be in Arabic language, and on the website of the company, if any. The invitation shall include such information as the ministry may specify in a decree to be issued on board offerings and shall include the following information: (1) The General Assembly resolution to issue the bonds and the date thereof, (2) The number and value of bonds approved for issuance, (3) The date of commencement and completion of the subscription process, (4) Due date of the bonds, and terms and guarantees for payment, (5) Value of previously issued bonds and their guarantees and value of bonds unpaid value at the time of issuing the new bonds, (6) The company share capital, (7) The company’s principal place of business, its date of incorporation and duration, (8) The value of the shares in kind, and (9) A summary of the latest balance sheet of the company certified by the auditor. The board of directors shall, within one month from the date of closing the subscription, submit to the ministry a statement of the subscription process, names and nationalities of the subscribers, and the value and number of bonds subscribed by each party.

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